Inflation Reduction act repeal: Green Energy Tax Subsidies
Scrapping these green energy subsidies could save the InflationInflation is when the general price of goods and services increases across the economy, reducing the purchasing power of a currency and the value of certain assets. The same paycheck will cover less goods, bills, and services. It is sometimes called a “hidden” tax, as it makes taxpayers less wealthy due to increased costs and “bracket-creep”, while increasing government spending power.
Reduction Act. Congressional Republicans are looking for ways to pay for extending the tax cuts scheduled to expire at the end of the year. Repealing of the green energy
taxAn income tax is a mandatory payment that local, state and national governments collect from individuals and businesses to cover costs for general government services, products and activities.
The Inflation Reduction Act, which includes expanded or new subsidies, is an attractive option. We at Tax Foundation estimated repealing all of these tax breaks would raise $851 billion over the next decade.However, several House Republicans recently signed a letter defending parts of the Inflation Reduction Act. Partial repeal can still generate significant revenue. The Inflation Reduction Act was designed to reduce greenhouse gas emissions. It introduced or expanded over 20 tax programs. However, most modeling of the Inflation Reduction Act shows the law is most effective in reducing power sector emissions.This is a preview of our full op-ed originally published in The Hill.
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